‘Quite ridiculous’ for the Reserve Bank to raise rates further

Independent analyst Evan Lucas says the Reserve Bank raising rates further looks “quite ridiculous” because inflation is falling at the “fastest rate” since the end of COVID. The Reserve Bank of Australia will meet next week for their first meeting of 2024 to decide on the official cash rate, which currently sits at 4.35 per cent. “There is every sign now that raising further from the IMF said last week looks quite ridiculous,” Mr Lucas told Sky News Australia. “You’ve got retail sales falling 2.5 per cent … inflation is falling at the fastest rate since the end of COVID. “So all of those things would mean, yes, we are locked in, and even with the stage three tax cuts and the debate around it, the gradual impact of them will be marginal.”